Help me w/ this problem, please!

Question

Alana's employer purchased a health insurance plan that costs $565 per month and requires that Alana pays $125 toward the plan. What is the annual value of the employer's contribution?

A. $4560
B. $4680
C. $5280
D. $1020

Answer 1

If Alana pays $125/mo toward an insurance plan that costs $565/mo then her employer must be paying the difference = 565-125 = 440/mo.

For the full year of 12 months then her employer pays = 12*440 = $5280.